Canada Silver Cobalt Works Inc (TSX-V:CCW, OTCQB:CCWOF) has told investors it has expanded its Greenfield lithium project in Ontario, Canada by staking new claims.
The land package in the Cochrane district now spans 230 square kilometres (sq km) and the new claims are contiguous with the original deal, which was announced in November this year. That original letter of intent (LOI) has now been amended to include additional claims staked by both parties.
The land is contiguous to Power Metal’s Case Lake lithium property, about five kilometers northwest of its West Joe Dyke and Main Dyke areas, which recently reported drill results that included 1.86% lithium over 19.00 metres.
Under the amended terms, the optionor shall grant to Canada Silver the right to acquire an a 100% interest in the property. The latter must pay cash of C$15,000 and issue 150,000 shares upon TSX Venture Exchange approval of the definitive agreement.
READ: Canada Silver Cobalt Works hails latest assays from Castle East drill program
Other terms include that the firm must spend C$30,000 on exploration on or before the one-year anniversary of the agreement to earn an undivided 50% stake.
It also must incur exploration expenditures of C$60,000 on or before the second-year anniversary to earn a 100% interest.
Upon exercise of the option, Canada Silver will also grant to the optionor a 2% net smelter royalty (NSR) on the property and on claims within a two kilometre 'area of influence' from the perimeter of the three claim packages as well as to certain company claims in between. The company retains a C$500,000 buy-back on 1% of the NSR.
Canada Silver Cobalt’s flagship silver-cobalt Castle mine and 78 sq km Castle property feature strong exploration upside for silver, cobalt, nickel, gold, and copper.
With underground access at the fully owned Castle mine, an exceptional high-grade silver discovery at Castle East, a pilot plant to produce cobalt-rich gravity concentrates, a processing facility (TTL Laboratories) in the town of Cobalt, and a proprietary hydrometallurgical process known as Re-2Ox, Canada Silver Cobalt is positioned to become a Canadian leader in the silver-cobalt space.
Contact the writer at giles@proactiveinvestors.com